Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
15th Edition
ISBN: 9780133781106
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 22, Problem 22.24E

A.

To determine

The after-tax operating income be maximized if it sold the 100,000 routers in the U or in G division.

B.

To determine

Whether the transfer price calculated in requirement 2 in 23E result in the division managers of U taking the actions determined to be optimal in requirement 1.

C.

To determine

The minimum transfer price at which the U division manager will agree and does this price results the company in a whole paying more import duty and taxes than the answer to requirement 2 and by how much.

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Ultimate Production manufactures radon detectors. The standard for materials for each detector is 4 pounds of acrylic at a standard cost of $7.30 per pound. During May, the company purchased 975 pounds and used 885 pounds of acrylic, and made 410 radon detectors. The company paid $4.45 per pound for the acrylic. There were 5100 detectors budgeted for May. How much is the material quantity variance?
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